- Montage Gold released a Preliminary Economic Assessment for its Kone Project this week, showcasing a project with average gold production above 200,000 ounces per annum.
- While this makes Kone one of the larger undeveloped gold projects globally from an annual production standpoint, the upfront costs are quite high, and operating costs aren't anything special.
- The project benefits from low strip and low rock hardness, but operating costs still come in at $975/oz, higher than most other undeveloped African gold projects.
- Based on Kone's much higher upfront costs relative to peers, and an inferior After-Tax NPV (5%) to Initial Capex ratio to peers, I believe there are much more attractive juniors to invest in currently.
For further details see:
Montage Gold: High Costs Make Kone Inferior Relative To African Peers